LoboGunLeather
US Veteran
Couple of months ago we had some discussion regarding US Treasury Bonds, specifically Series I bonds. New updates coming on line now.
Series I Bonds (inflation adjusted based on Consumer Price Index CPI-U semi-annually end of May and end of October). Current return is a record high of 9.62%, valid until October 28, 2022 and locked in for initial 6-month period from date of purchase. CPI-U numbers are now in and analysts are predicting the new adjusted rate to be 6.47%.
So, a considerable drop from the current yield but still about 4.5 to 5 times the rates I'm seeing on money market and certificate of deposit accounts. No withdrawals during year 1, years 2 thru 5 have an early withdrawal penalty of prior 3 months interest (just like a bank CD account). Earnings subject to federal income tax, exempt from state tax. Annual limit of $10,000 per individual. Can be given as gifts, each recipient subject to the annual limit.
Two-year Treasury Bonds now offering 4.507%. This is about triple what my bank and credit union are offering on 2-year CD accounts.
Worth considering for those with some cash that is not committed to other needs for the coming year or two. Each program has limitations and restrictions, so do your research to see if there is room in your investment planning for Treasury Bonds.
More information on these and other US Treasury investments can be had at treasurydirect.com, the only source (no brokerage, no banks, direct to the public).
Easy to open an account, link to a bank account, purchase and redeem with the click of a button. This is the United States Treasury so full faith and credit of the US Government applies to all investments.
Edit: Ooops, looks like I posted in the wrong forum. Intended for the Lounge.
Series I Bonds (inflation adjusted based on Consumer Price Index CPI-U semi-annually end of May and end of October). Current return is a record high of 9.62%, valid until October 28, 2022 and locked in for initial 6-month period from date of purchase. CPI-U numbers are now in and analysts are predicting the new adjusted rate to be 6.47%.
So, a considerable drop from the current yield but still about 4.5 to 5 times the rates I'm seeing on money market and certificate of deposit accounts. No withdrawals during year 1, years 2 thru 5 have an early withdrawal penalty of prior 3 months interest (just like a bank CD account). Earnings subject to federal income tax, exempt from state tax. Annual limit of $10,000 per individual. Can be given as gifts, each recipient subject to the annual limit.
Two-year Treasury Bonds now offering 4.507%. This is about triple what my bank and credit union are offering on 2-year CD accounts.
Worth considering for those with some cash that is not committed to other needs for the coming year or two. Each program has limitations and restrictions, so do your research to see if there is room in your investment planning for Treasury Bonds.
More information on these and other US Treasury investments can be had at treasurydirect.com, the only source (no brokerage, no banks, direct to the public).
Easy to open an account, link to a bank account, purchase and redeem with the click of a button. This is the United States Treasury so full faith and credit of the US Government applies to all investments.
Edit: Ooops, looks like I posted in the wrong forum. Intended for the Lounge.
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